Discretionary Income Definition Economics

It is disposable after tax income all the payments necessary to meet current essential bills such as rent insurance food transport heating for example a family may have a weekly disposable income of 365.

Discretionary income definition economics. The term is commonly used in economics in reference to government policies such as discretionary fiscal policy or discretionary monetary policy. For much of the 20th century governments adopted discretionary policies to correct the. Discretionary income is a widely used but imprecise definition of that portion of personal income not spent on actual or perceived necessities. Discretionary income is the amount of an individual s income that is left for spending investing or saving after paying taxes and paying for personal necessities such as food shelter and.

In both examples government undertakes explicit actions through changes in government spending taxes the money supply or interest rates to stabilize the business cycle. Amount appropriation a price on someone s head bailout bankroll blood money bond bounty budget dictionary blog. Seller s discretionary earnings is an earnings metric used to value an organization to provide the potential buyers with a more accurate picture of the available cash flow. Income maintenance is based in a combination of five main types of program.

Related terms for discretionary income. Further reading edit. Discretionary policies refer to subjective actions taken in response to changes in the economy. Discretionary income is the income available to spend.

Discretionary is also frequently used to modify income spending. This metric is more commonly used in the valuation of main street organizations rather than middle market ones. A specific choice act or decision often designed to achieve a particular goal. The reported earnings for smaller firms are often kept low by the.

Discretionary income countable and uncountable plural discretionary incomes economics disposable income minus all payments necessary to meet current bills. Arguments for and against discretionary monetary policy.